Onfolio Holdings used proceeds from its $300 million convertible note facility to retire $640,000 of seller notes that originated from a prior acquisition. The retirement took place on December 8, 2025, and the company announced the move on December 9.
In addition to the retirement, Onfolio is converting an additional $850,000 of seller notes into common stock over the coming weeks. The combined effect of the retirement and conversion clears roughly $1.5 million of debt from the balance sheet, cutting annual interest expense by about $150,000 and improving liquidity.
The $300 million financing, secured in November 2025, is a cornerstone of Onfolio’s strategy to grow its digital asset treasury, generate staking yield, and restart its acquisition program. The facility’s terms allow the company to deploy capital flexibly while maintaining a manageable debt profile.
CEO Dom Wells emphasized that eliminating the debt is a key priority that strengthens the company’s financial position and supports its dual‑engine growth model. He noted that the financing also fuels cryptocurrency yield generation and positions Onfolio to capture upside from digital asset price movements.
While the debt reduction improves cash flow, the conversion of seller notes into equity will dilute existing shareholders. The company has communicated that the dilution is modest and that the long‑term benefits of a stronger balance sheet outweigh the short‑term impact.
Analysts view the move as a positive step toward stabilizing Onfolio’s high debt‑to‑equity ratio and improving its Altman Z‑Score, but they caution that the company still faces liquidity constraints and losses in recent quarters. The debt elimination, however, is expected to provide a clearer path to profitability as the firm continues to invest in its digital asset strategy.
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